Cadmac Software Licensing with Sentinel

Cadmac replaced a manual, restrictive licensing approach with a flexible, scalable system using Thales Sentinel. This transformation improved operational efficiency and allowed the company to adapt to market demands as often as required. The company is now poised to expand software monetization while continuing to serve the specialized needs of sheet metal manufacturers.

Customers deploy Cadmac software solutions across both cloud and on premises, integrated into their production environments. As Cadmac expanded, their legacy licensing platform limited both operational agility and commercial flexibility, and in 2023, they sought an enterprise grade, scalable solution. 
 

Challenges with Software Licensing and Entitlement Management 

Cadmac wanted to accelerate revenue, streamline operations, track license usage, and ensure software and IP protection. They faced the following problems: 

1. Inability to scale. 

Cadmac’s initial model was a one-time, perpetual license, which limited their ability to monetize. The company wanted to generate more revenue by offering subscription models with free trial access, flexible licensing, feature add-ons, and offline deployment. 

2. Manual, complex licensing. 

An external development partner manually generated and managed their licenses requiring an onsite visit to activate the license and take the necessary steps to ensure it worked properly. This dependency delayed product delivery by several days if not weeks. 

3. Lack of visibility and self-service portals. 

Under the original arrangement, Cadmac, their distributors, and their end users could not manage license activations independently, nor did they have an overview of the license usage. Sales and development teams handled activation and updates related to usage, which was an inappropriate use of time and resources, and moreover, blocked users from the direct access they wanted. 

4. Needing enhanced protection. 

Cadmac sought protection against reverse engineering of their source code, and prevention of unauthorized software usage. For all these reasons, Cadmac looked for a robust software licensing and monetization platform.
 

The Sentinel EMS and LDK Solutions

Cadmac chose Sentinel for their technical capabilities and renowned support in their locale, speaking their language. Upon reviewing their specific needs with Thales, Cadmac chose the Sentinel Entitlement Management System as a Service (EMSaaS) and LDK to implement as their cloud-hosted, scalable, and secure licensing framework. Sentinel EMSaaS with LDK provided Cadmac a full package because the Sentinel Licensing Development Kit (LDK) includes Sentinel Envelope, which protects against reverse engineering, tampering, piracy, and counterfeit licensing. In addition to operational efficiency, Sentinel allowed Cadmac to standardize licensing across their product portfolio to support multiple, flexible licensing models.

The company further delighted their customers by enabling licensing activation for both offline production sites and connected enterprise systems. Customers can now activate and manage licenses in ways that match their infrastructure. “Instead of needing to manually install each license, we now deliver licenses directly, and users manage licenses autonomously, all online,” emphasized Mitsuyuki Watanabe, General Manager. “They can then choose to use their license online or offline, further answering their need for flexibility.”

Cadmac advanced their operational and business goals in partnership with the Thales support team via technical guidance and tailored recommendations for every step, from defining requirements to go-live. Routine communication enables Cadmac to continuously improve licensing strategies for their evolving business.
 

The Results of Streamlined Software Licensing

Sentinel significantly improved Cadmac’s operations and customer experience. The company streamlined licensing processes, reduced manual effort, and eliminated dependencies on specific individuals and external partners for license management. Cadmac currently manages over 800 license activations, with each supporting multiple activations for base products and add-ons, demonstrating increased adoption and the ability to handle complex licensing scenarios.

Key Capabilities Enabled Include:

• Support for multiple licensing models, including subscriptions with add-ons
• Hybrid activation for both online and offline environments
• Centralized license management
• Customer self-service through portal-based activation
• Foundation for future automation and system integration 

Cadmac is now able to move their sales strategy beyond perpetual licensing by introducing subscription and usage-based models, creating new opportunities to upsell, cross-sell, and renew contracts. From the customer’s end, users activate licenses immediately to eliminate delays and improve productivity. Flexible licensing ensures customers receive the right configuration for their needs, while improved stability reduces software issues related to licensing.
 

Looking Ahead

Now that Cadmac has the infrastructure to connect licensing workflows with order management and scale operations, they plan to further automate internal processes and explore cloud-based licensing. licensing. In addition, Cadmac intends to leverage licensing data to align their offerings with customer usage patterns to increase revenue. “We view Sentinel as our foundation for scaling our business now, as well as future business expansions,” notes Mitsuyuki Watanabe, General Manager.